Raya Financing

What Raya Financing does

Raya Financing Company (شركة راية للتمويل) is a Saudi closed joint-stock company licensed by the Saudi Central Bank (SAMA) under license 44/A/Sh/201603, headquartered in Dammam with branches in Riyadh and Jeddah. Founded in 2016, the company specializes in Sharia-compliant vehicle financing for individuals, SMEs, and large enterprises across all regions of Saudi Arabia, holding a Fitch national scale rating of BB-(sau) with stable outlook and operating a publicly listed Sukuk programme.

The company's core product suite is built around Islamic finance structures: Ijarah (operating lease with end-of-term purchase option, up to 60 months), Murabaha (cost-plus installment sale, vehicle registered to customer from inception), and a 50/50 flexible payment program. Specialized programs extend access to underbanked segments, including the Ladies Program (no guarantor, SAR 3,000 minimum salary), the Trainees Program (0% down payment, SAR 2,500 minimum salary), the Entrepreneurs Program (bank-statement-based underwriting for self-employed), and used-car C2C financing. A dedicated corporate fleet product targets logistics, construction, healthcare, entertainment, manufacturing, and trading clients with deal sizes exceeding SAR 3M per vehicle.

Raya's go-to-market combines a 24/7 self-serve digital application platform with a physical branch network and a dedicated corporate sales team. Revenue is generated primarily through recurring monthly installments and lease rentals, with admin fees of 0.5-1% of financed amount and APR spreads ranging from 11.68% (retail Ijarah) to 31.42% (corporate fleet Ijarah). In February 2026, the company executed the first AT1 Sukuk issuance by a non-banking financial institution in Saudi Arabia on a public offer basis (SAR 300M under a SR 500M programme at an 8.5% coupon), listed on the Saudi Exchange, providing wholesale funding to support portfolio growth. Raya is also one of five institutions selected for the Saudi Cultural Development Fund's first co-lending product, extending its Sharia-compliant lending capabilities into cultural project financing under Saudi Vision 2030.

Name

Raya Financing

Legal name

Raya Financing Company (شركة راية للتمويل)

Website

https://rayafinancing.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

101–250 employees

Short description

Raya Financing is a Saudi SAMA-licensed, Sharia-compliant auto financing company headquartered in Dammam, serving individuals, SMEs, and large enterprises across Saudi Arabia through Ijarah, Murabaha, and 50/50 product structures via a digital platform and three-branch network.

Ownership category

akta.pro rank

Product category

Islamic Auto Financing

NAICS

Sales Financing (522220)

SIC

Finance Lessors (6172)

akta.pro primary industry

Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam) (FSABAGAH)

akta.pro secondary industries

Islamic SME & Commercial Banking (FSABAGAB), Fleet & Commercial Vehicle Finance (FSAKADAE)

Keywords

• Auto financing services
• Sharia compliant lending
• Fleet financing solutions
• Vehicle leasing programs
• Islamic car financing

Headquarters

HQ city

Dammam

HQ country

Saudi Arabia

HQ region

Middle East

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Auto Financing - Ijarah (Leasing): Raya provides Ijarah (operating lease) financing where customers make monthly rental payments for a vehicle over a specified period (up to 60 months) with the option to purchase at end of contract. Revenue is generated through rental installments plus a purchase option fee and admin charges.
2. Auto Financing - Murabaha (Installment): Murabaha is a cost-plus sale structure where Raya purchases the vehicle from the dealer and resells it to the customer at a markup over the cost, payable in monthly installments. Revenue derives from the profit margin built into the installment schedule.
3. AT1 Perpetual Sukuk Issuance: Raya raised SAR 300 million through its debut Additional Tier 1 perpetual Sukuk issuance under a SR 500 million AT1 Capital Sukuk Programme, carrying an 8.5% annual coupon. This is callable after five years and was listed on the Saudi Exchange.
4. Corporate Fleet Financing: Fleet financing services for businesses with Ijarah and Murabaha products, generating recurring revenue from monthly lease/financing payments and administrative fees.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels6 records

Core offering

Raya Financing Company provides Sharia-compliant vehicle (auto) financing products in Saudi Arabia, structured under Islamic finance contracts including Ijarah (operating lease with end-of-term purchase option), Murabaha (cost-plus installment sale), and a flexible 50/50 payment plan. It serves both individual retail customers (with specialized programs for women, trainees, entrepreneurs, and used car buyers) and corporate clients through dedicated fleet financing, distributing products via an online application platform, branch offices in Dammam, Riyadh, and Jeddah, and direct corporate sales.

Product overview

Raya Financing is a Saudi auto financing company operating under a license from the Saudi Central Bank (SAMA), offering Sharia-compliant vehicle financing solutions. The company provides a portfolio of Islamic finance products including Ijarah (operating lease), Murabaha (cost-plus sale), and flexible payment options, complemented by specialized programs targeting distinct customer segments: trainees, entrepreneurs, women, and corporate fleet clients. The products serve both individuals and businesses across all regions of Saudi Arabia, with headquarters in Dammam and branches in Riyadh and Jeddah.

Differentiator

Problem solved

Functional benefit

Products and services

• Ijarah (Financing Leasing) — التمويل التأجيري (إجارة) Sharia-compliant auto financing product where the customer makes monthly rental payments for up to 60 months with an option to purchase the vehicle at the end of the contract period; supports financing for up to 3 vehicles and is available for new and used vehicles.
• Murabaha (Installment) — المرابحة Sharia-compliant cost-plus installment financing product where Raya purchases the vehicle from the dealer and resells it to the customer at a markup over cost, payable in monthly installments; vehicle is registered in the customer's name from the start. Available for Saudi nationals with a minimum salary of SAR 7,000.
• 50/50 Flexible Payment Program — برنامج الدفعتين Flexible payment option where the customer pays 50% of the vehicle price as a down payment and 50% as a final payment, with optional monthly installments available; financing period up to 36 months.
• Used Car Financing — تمويل السيارات المستعملة Financing program for used vehicles purchased from dealers, showrooms, or individuals (C2C), including mandatory vehicle inspection at company-approved centers; available for new and used vehicles under Ijarah and Murabaha products.
• Trainees Program — برنامج المتدربين Specialized financing program for trainees in vocational training programs (training ending with employment); financing up to SAR 150,000 with 0% down payment, minimum salary SAR 2,500, available for applicants aged 18+ who have been enrolled in an approved training program for at least 2 months.
• Entrepreneurs Program — برنامج رواد الأعمال Financing program for self-employed business owners, evaluated using business bank statement analysis; allows financing up to 3 vehicles, requiring business registration of at least 2 years and additional documentation including commercial register, Zakat certificate, Chamber of Commerce certificate, professional license, and GOSI insurance certificate.
• Ladies Program — برنامج السيدات Women-focused financing program supporting women with limited income to obtain transportation, featuring immediate approval, no guarantor required, financing up to SAR 300,000, and availability for both Saudi and resident women with salary starting from SAR 3,000.
• Corporate Fleet Financing — تمويل الشركات والمنشآت Business financing solutions for companies needing vehicle fleets across sectors including logistics, construction/contracting, healthcare, entertainment, manufacturing, and retail; includes Ijarah and Murabaha products with dedicated corporate terms and admin fees.

Quantifiable outcome

• SAR 300 million ($80 million) raised through AT1 Sukuk issuance
• +2 more outcomes

Segments7 records

Ideal customer profiles6 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Seven partnerships are on record, tiered flagship and core.

• Saudi Cultural Development FundflagshipStrategic or Co-development Partner · 30 September 2025Raya Financing is one of five financial institutions participating in the Saudi Cultural Development Fund's first co-lending product, unveiled at the Cultural Investment Conference in Riyadh, to unlock over SR1 billion ($270 million) in financing for cultural projects through public-private partnerships aligned with Saudi Vision 2030.
• Al-Raedah FinancecoreStrategic or Co-development Partner · 30 September 2025Al-Raedah Finance is one of five leading Saudi financial institutions co-lending with the Cultural Development Fund for cultural project financing under Saudi Vision 2030.
• Manafa FinancecoreStrategic or Co-development Partner · 30 September 2025Manafa Finance is one of five leading Saudi financial institutions co-lending with the Cultural Development Fund for cultural project financing under Saudi Vision 2030.
• LendocoreStrategic or Co-development Partner · 30 September 2025Lendo is one of five leading Saudi financial institutions co-lending with the Cultural Development Fund for cultural project financing under Saudi Vision 2030.
• Abdul Latif Jameel FinancecoreStrategic or Co-development Partner · 30 September 2025Abdul Latif Jameel Finance is one of five leading Saudi financial institutions co-lending with the Cultural Development Fund for cultural project financing under Saudi Vision 2030.
• Hyundai (Al-Majdouie)coreChannel Partner/ Reseller/ DistributorRaya Financing partners with Al-Majdouie (Hyundai agent) and Changan for Murabaha financing products, where Raya purchases the vehicle from the dealer and resells it to the customer at a markup. This partnership enables the installment purchase product offering.
• ChangancoreChannel Partner/ Reseller/ DistributorRaya Financing partners with Al-Majdouie (Hyundai agent) and Changan for Murabaha financing products, where Raya purchases the vehicle from the dealer and resells it to the customer at a markup. This partnership enables the installment purchase product offering.

Scale indicators6 records

Recent moves6 records

Expansion highlights7 records

Emerging players

• Lendo: Saudi fintech operating a Sharia-compliant P2P and SME lending marketplace, including working-capital products. Comparable to Raya as a SAMA-supervised Saudi Sharia-compliant financier, though Lendo's model is marketplace-based rather than balance-sheet auto financing. Co-lending partner in the Cultural Development Fund programme.
• Manafa Finance: Saudi fintech-style NBFI offering Sharia-compliant SME and consumer finance products via a digital platform. Comparable emerging player to Raya in the Saudi Islamic non-bank finance space, with co-lending participation in the Cultural Development Fund programme.

Broad incumbents

• Saudi National Bank (SNB): Largest bank in Saudi Arabia, offering a broad retail and corporate portfolio that includes Sharia-compliant auto financing. While Raya competes directly for retail auto customers, SNB benefits from deposit funding and cross-sell at scale, making it a broad incumbent rather than a pure NBFI peer.
• Bank AlJazira: Saudi bank with a growing Sharia-compliant retail and consumer finance business including auto financing. Competes with Raya in Saudi Islamic auto finance but from a broader banking platform.
• Bank Albilad: Saudi fully Sharia-compliant bank with a strong retail auto finance offering and nationwide branch network. Comparable Islamic product positioning to Raya but with deposit funding and full-service banking capabilities that Raya lacks.
• Al Rajhi Bank: Largest Islamic bank in Saudi Arabia and a major provider of Sharia-compliant auto financing alongside a vast retail banking franchise. Overlaps with Raya's Islamic auto finance products but competes from a much broader, deposit-funded balance sheet.

Direct peers

• National Finance Company: Saudi closed joint-stock NBFI providing consumer and SME Sharia-compliant finance including auto financing. Directly comparable to Raya in product mix, regulatory standing, and Saudi-only operating scope.
• Al Yusr Leasing and Financing Company: Saudi SAMA-licensed NBFI specializing in Islamic leasing and financing products for SMEs and corporates. Comparable to Raya's corporate fleet Ijarah offering and Sharia-governed product structure.
• Al-Raedah Finance: Saudi non-bank finance company providing Sharia-compliant SME and consumer financing products across the Kingdom. Comparable to Raya as a SAMA-licensed NBFI with diversified retail and SME finance offerings and a shared co-lending partnership role in the Cultural Development Fund.
• Abdul Latif Jameel Finance: One of Saudi Arabia's largest non-bank auto and consumer finance companies, offering Sharia-compliant vehicle and equipment financing. Directly comparable to Raya given similar Islamic product set, dealer-partner model, and nationwide Saudi footprint; also a co-lending partner with Raya in the Cultural Development Fund programme.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Raya Financing